Traders said that continued uncertainty over talks between Belgian-French banking group Dexia and Belgian banking-and-insurance group Arco about a possible alliance continued to hurt Dexia shares. In a joint statement, the companies Wednesday said the negotiations concern a possible alliance in banking and insurance acquisitions.

Dexia fell 3 euros, or 1.6%, to 181 euros. Fortis remained vulnerable to continued weakness in the banking sector and dropped 47 European cents, or 1.6%, to 29.30 euros.

Bekaert
shares fell 68 cents, or 1.4%, to 47.90 euros, as investors continued to shun the steel-cord maker's shares. Bekaert announced that 2000 group net profit rose 17% from 1999, to 93.8 million euros from 79.9 million euros, after the market close.